Bitcoin vs. Ethereum – Mining Process

Bitcoin vs. Ethereum – Mining Process

One the key similarities between bitcoin and ethereum are that both can be created through the mining process. We’ve explained already how the mining process for bitcoin takes place for bitcoin and now we’ll discuss how ethereum can be mined and what you should know about that process.

Ethereum mining – is it better than bitcoin?

First, an important aspect which should be discussed is the money supply. As you already know, only 21 million bitcoin could be mined and more than two-thirds of them have already been mined, with the vast majority of them going to miners with a few years of experience in this field. By comparison, ethereum raised its launch capital with a presale and only half of its coins will be mined by the time five years of its existence will pass.

In terms of rewards for mining, in the case of bitcoin, those rewards halve every four hours, which makes the mining process more difficult and you need more hardware capacity to generate bitcoins. On the other hand, ethereum rewards its miners based on a proof-of-work, just like bitcoin, but they have an algorithm called Ethash, with 5 ether that is given for each block. Simply put, Ethash is a hashing algorithm that encourages decentralized mining.

Also, bitcoin and ethereum had different costs for a transaction. In ethereum, the cost is called Gas and it depends on the storage needs, bandwidth usage and complexity.

With that being said, these are just some of ethereum mining features that make it easier to generate than bitcoin.

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